Archive for the 'Market Trends' Category
New Orleans Warehouse District Condo Update-July 2008
July 13th, 2008 categories: Market Trends, Warehouse District
The heat and humidity of the New Orleans summer is upon us but sales are still happening. Sellers have a nice unit and it has to be priced right to get the buyers attention. The big trend that I have noticed is the demand for the 300-400k,` 2 bedrooms are way up over that of a year ago. I have sold several units this year around the 300k price to people that are buying them as second homes. This second home segment of the market was missing last year. You also see more people coming for jobs that are also buying condos as their primary homes.
There are currently 181 units listed as active which includes some pre-sales and a good number of developer units. There have bee 38 sales since May and there are currently 33 units under contract. The price levels remain rather stable year over year. Condo fees have leveled off as the effects of Katrina have vanished from the scene in this area of town. The energy prices seem to be having little effect on the area.
The energy prices may be having a positive effect on condo sales. The commutes are small and the need for a car is much less in a downtown area. You can walk more or take the streetcar to avoid the increased fuel prices. I tend to see an even split of locals and new comers choosing this area as place to settle.
The expansion of the World War Two Museum in the Warehouse District is moving along will a completion date of next summer. The expansion will triple the size of the present day museum. There are several new apartment complexes expected to be completed in the next year as well. Lots of construction in the area.
Rentals have been hard to find as owners are not renting the units out as much and the demand has eaten up most of the supply in most of the complexes.
My son Marcus just moved back for Houston for a better job, now that is a switch. He had been there since Katrina and wanted to return to a small town.
| Discussion: No Comments »
New Orleans Condo Rentals-Demand is high for Uptown and the Warehouse District. Buyers window Shopping?
June 9th, 2008 categories: Market Trends
Demand is high for rentals in a couple segments of New Orleans Condo market. I am getting calls daily from people looking to rent in Uptown New Orleans and the Warehouse District. There choices are few as many newcomers have decided to rent rather than buy until they know more about the area. The lending requirements have been tightened but this makes less difference that the attitudes people bring with them from other markets.
New Orleans has never been a great place for nice condo rentals. This is especially true this year. Condos make an ideal rental as most have been updated, most are secure and in safe areas. The units and common areas are maintained and many have amenities that people are looking for like a gym, security, common areas, pool and great locations.
Many that have thought about purchasing a condo but decided to wait. I think it has a lot to do with the real estate bubble that has happened in the rest of the country. New Orleans is not like the rest of the country as overbuilding did not take place in the City of New Orleans. Katrina washed away thousands of homes. Insurance rates have made owning a condo a lot cheaper than a home. Many times homeowners Insurance exceeds that of condo fees. Condo fees cover insurance.
The seller still pays the condo fees and taxes when he or she rents and has to pass those fees to the renter. Most time the seller has to pay a note on top of the fees and taxes. That is why the Warehouse District has few units below 1300 per month and the prices start at the 175k level. Many times it makes sense to buy instead of renting.
Its a great market if you want to rent a nice unit and be a landlord. You can generally have your pick of people in the under $1600 per month range. The price of transportation has also been a factor in people wanting to be closer to the downtown area. Its also the trendy areas where young professionals want to be that has caused demand.
| Discussion: 1 Comment »
New Orleans second homes, New Orleans Condos fit the bill in the French Quarter, Warehouse District and Uptown. Buyers returning!
June 2nd, 2008 categories: Market Trends, Second Homes
Second home buyers are returning to the New Orleans Real Estate market in the Spring and Summer of 2008. Several Years ago second homes were mainly to be found in the New Orleans French Quarter. Now the Warehouse District and Uptown are also favorite spots depending upon the lifestyle that the buyer desires. The prices remain most expensive in the French Quarter, then the Warehouse District and then in the Uptown area of New Orleans. Condos have been the choice for most second home purchasers.
This was not the case the past 2 years following Katrina. Now all of a sudden people are aggressively looking in the areas where they want to be. Prices have remained rather stable since 2005. You have some motivated sellers so its not hard to find the right deal. Buying a condo makes the most sense as the upkeep and insurance are in the condo fees.
The French Quarter has shown the most dramatic movement and improvement as many of the units are already second homes. Since business has been slower for two years there has been a build up of inventory which makes for more buys of high quality units. The other element is that people are also choosing other areas of town within to buy for a variety of reasons. A lot of the business has been in the 250-400k range. looking for less than 200k its best to look in the Warehouse District.
The Warehouse District Condos are going to more updated since very few even existed ten years ago. The center of activity for the Warehouse District is around the Julia Street area. You can walk to the French Quarter from here. This is where many of the locals live and walk or ride the street car to work. Its the place to be for young professionals and those second homers who have kids and family with them.
Its much easier to find two bedroom units with parking in the Warehouse District. Many of the condos feature common areas security and tend to be larger complexes unlike the French Quarter. The Cotton Mills gives you a great value for those looking at under 200k and want the amenities of having a pool, parking security and exercise room. Pets are welcome in the Warehouse District. Julia Place has also been hot as they have finished the common areas and offer a great location in the center of the area.
The Uptown area has also beginning to see people buying in this area of town as a weekend retreat from the busy week. Here there is also no need for a car as you can streetcar to town rather quickly. The city is compact so nothing along the Mississippi River is very far away. Most of these areas had no flooding from Katrina. The condos in Uptown New Orleans come in all shapes and sizes. Its easier to find things under 200k and the it depends on what you are looking for.
Many people buy units while their kids are to school and either take over the unit or sell and buy something larger. The area feels the college market more than any other. The new factor is the second homes and condos tend to be the most viable choice.
Gas prices are effecting everyones pocket book this Summer of 2008. But once your hear you can get plenty of exercise and ther is no need to ride in your car. The cost of a Hurricane at Pat O’Briens is soon going to be cheaper than a gallon of gas one of these days. The variety is there and it will depend on what you would like to pay and enjoy. I am very good at picking the best in your price range so call me or shoot me an e-mail.
| Discussion: 1 Comment »
New Orleans Condos and High energy prices, Postive effects! How do you view it?
May 15th, 2008 categories: Market Trends
With ever rising energy prices New Orleans condos offer a unique chance to save money and energy. This is especially true of the New Orleans Metro area which is compact and very compact in the Warehouse District, Uptown and French Quarter. You can walk many places and do not have to drive very much at all.
The New Orleans public transportation like the street cars run on electricity are easy to use and a delight to ride. The savings here is not just on gas but time as well. “time is money rings true” Many clients look at condos to save on commute times.
Most condos are smaller than homes by their nature and thus are efficient. The nature of condos being much like a honey-cone effect. This is a natural insulator. The think walls of many warehouse units also have to help in keeping the units cool. Using a heater more than 15 days per year is unusual in New Orleans. Many of the units that I sell were built before air conditioning where high ceiling, fans, and windows were the norm.
You buy less since you have less storage area. You walk more helping your heart and your pocket book. Maybe we could spend more on sidewalks and bike paths and less on roads. Maybe not, as New Orleans is noted for its forgotten roads. Repairs every 100 years does not cut it in today’s world. We have a lot of bad drivers that would also be safer walking.
Condos use less land leaving more room for many to enjoy the public areas. New Orleans is more of a European style city with neighborhood shopping and neighborhood services. The reason its part culture and part geography. When you are surrounded by water its tough to spread out. Common areas can be made better and enjoyed by all. Audubon Park is just such a place in the middle of the city. Just some ideas and thoughts.
These factors are especially appealing to second homers who love not using their cars when they come to visit. New Orleans looks like it could become a green city with a little push here are there.
| Discussion: 1 Comment »
New Orleans Uptown Condo Market, Variety of Choices comes alive in the Spring!
May 4th, 2008 categories: Market Trends, Uptown NOLA
New Orleans Uptown Condos are going to come in a variety of shapes, sizes, and types. There are going to be large complexes that have been converted into condos from apartments from the 1970s era. There are going to be conversions for the 1920’s and 1930’s along St. Charles Ave. A common type is where an old home has been converted into several condos. There will be four plexs and doubles that have been converted. There will be few condos that were built as condos available. There are also a couple where the developer put several homes together with parking to have both the historic look and the feel of a complex.
The Uptown Condos are going to appeal to a variety of clients from students, residents of local medical schools, young people starting out, retired people and more and more second homers. The prices of the nicer homes in Uptown have made condos a better choice when you do not want to take care of repairs, a yard, high insurance rates and have other things in your life to do.
Most of the condos are still going to be on the small side when compared to a home but the cost are also going to be much lower. As always location is an important factor as well as condition. In uptown there is going to be a large variety of conditions with most units having been updated in the last 4-5 years.
The market picks up every Spring as young people make buying decisions. You can get the better deals this year and save more then renting if you are going to be here a couple of years. The rents have gotten just too expensive for what you get.
I was showing this week in the 160k and below range and we found several nice units. There will be many more choices in the under 200k range. Each Spring more people sell but also more people are in the market to purchase. It is must to know your numbers in what you can afford because the condo will be there. Especially if you can do some work on updating some of the older units. These have fallen out of favor since Katrina.
| Discussion: No Comments »
Warehouse District Condos, Market Update! Its not always just the numbers!
April 24th, 2008 categories: Market Trends, Warehouse District
This week there are 197 condos for sale in the New Orleans Warehouse District. This does seem like a lot of condos for sale. If we examine the numbers, the amount of resale units are far less. This number includes several pre-sale condos and several new conversions.
There are 15 condos at the Rotunda which are located 330 Julia Street. These are conversions from apartments into condos. They are currently being renovated. There are 10 units for a hotel condominium Royal Cospolatitan at 121 Royal. There are 7 units listed for the Tracage which is to be built.
There are 9 new units that are still for sale at Mills Row Condos on John Churchill Chase. Most of the units have been sold. The Pre-sales at 835 Julia have 10 listed. This project is underway as the building already exists.
There are 28 units below 200k which is high for the Warehouse District. This is a high number for resales in this price range. There are 39 condos for over 500k which is also a higher number than usual. Many of the higher end units have come on the market in the last 30 days. Read the rest of this entry »
| Discussion: No Comments »
French Quarter Condos Market Update, March 2008
March 19th, 2008 categories: French Quarter, Market Trends
The New Orleans French Quarter Condo market is much slower than in years past. There are several reasons for this. Many of the units are second homes and the Quarter is getting competition from other areas such as the Warehouse District, Uptown New Orleans and the Marigny. Katrina had a large effect, not from damage or flooding but because today we see fewer numbers of tourists and visitors. Good news, the trend is improving!
Many of the units have retained their pre-K pricing — others have not been updated. However, with that said once you cull through the odd ball units, questionable locations, and pre-K priced condos, the number of choices becomes more manageable. I think the market may be better than in 2007 as we move further away from Katrina. The historic area will hold up if for no other reason than the location cannot be duplicated.
In today’s New Orleans MLS there were 144 condo units for sale in the New Orleans French Quarter. There are 16 units under contract waiting to go to sale. There are 55 units in the under 250k category, 66 units in the 250-500k range and that leaves 33 units over 500k for sale. The majority of these are second homes and quite a few new conversions. A lot of people are starting to look again and there is not a lot of new inventory coming on the market.
In 2007 there were 118 condos sold with 40 units being under 500 sq. ft. Can you believe that some were in the 200sq. ft. range? If you look at the units that I show between 200k and 500K the average selling price per sq. ft. was in the range of $380 per sq. ft. for 2007. These are just averages but it gives you an idea of what to expect. The secret is to find someone who is motivated to sell and who has their unit priced correctly.
| Discussion: No Comments »
New Orleans Warehouse District Condos, Market update March 2007, Seasons do Matter
March 18th, 2008 categories: Market Trends, Warehouse District
New Orleans Warehouse District Condo Updates - Its a good time to update you on the status of Sales and Outlook forf the Warehouse District Condos for the upcoming Spring season. The amount of buyers we see looking around has been picking up in the last 3 weeks. At the same time the amount of listings coming on the market has also increased. Real Estate remains seasonal as people tend to move in the spring and summer. Each price range has a number of good choices.
This tends to happen every year as New Orleans is a primary place of residence for many medical students and residents at the nearby teaching hospitals. Tulane and LSU Medical Schools are within an easy walk. These are motivated sellers as they will be moving to different parts of the country for the next steps in their training. There are also many sellers dropping their prices after not selling at generally inflated prices. However, we continue to see overpriced condos.
People looking for second homes begin searching as the days get longer and the weather is inviting. At the same time present sellers and owners also know this. What they do not know is that prices here have been rather steady for the last three years. Some sellers may have paid too much and others got very nice deals. The buyer must view the unit as what it is worht as opposed to the asking price. Unless it is a cash sale, the condo has to appraise to cover the loan. In our internet-savy world, buyers can learn what the seller paid for the unit and under what circumstances. The buyers’ agents’ job is to point out these facts.
Here are some statistics to consider. Right now there are 176 Warehouse District Condo units for sale. There are 124 below 400k and 27 units under 200k. In each of the price ranges we will quickly get down to 4-5 choices. Many of the units are not priced to sell as of yet. People are becoming more motivated as to what is happening on the National scene which effects buyers and sellers. The interest rates are jumping all over the place along with changes in financing for condos.
| Discussion: No Comments »
New Orleans Condos and the foreclosure Market, Louisiana ranks 40th!
March 14th, 2008 categories: Condo Knowledge, Market Trends, Real Estate News
According to City Business “Louisiana was ranked near the bottom of the National Foreclosure list, a not so good list, at No. 40. The state had 650 properties with foreclosure filings, for a decline of 15.25 percent from February 2007 and a 9.72 decline from last month. “ Many of these could be Katrina related but it does not breakdown the reasons for foreclosures.
I have yet to see a foreclosure on a condo in the areas of New Orleans that I work and very few homes. There was one that was getting ready for the Sheriffs sale last August but it was pulled at the last moment. There was not a lot of speculation in this market and thus the downturn will be less. This is not to say the condo market is robust as it is not. Most of the units are holding onto gains.
Condo purchases are going to be less affected than homes in the New Orleans market as the buyers were more upscale and had large down payments, cash transactions, and very few were in the sub prime category. I only know of one unit that I sold in the last 5 years where it was a B paper loan. The person oddly enough was a mortgage orginator for a sub prime lender. He had also no business in the areas where I worked which was a good omen as I look back.
Its good to be on the bottom of some lists. Louisiana then ranks near the top in growth for 2008. Primarily due to increase in exports , high prices for oil and gas, rebuilding after Katrina and a positive effect of lower taxes compared to other states. Our new Governor is lowering taxes on businesses and making the state more business friendly. It does not hurt to have a billion dollar tax surplus which is being put into roads, coastal restoration and education. Solid principles for job growth. He happens to be a conservative Republican in a Democratic state.
| Discussion: No Comments »
New Orleans Condos, Best Cities For Singles, New Orleans ranked #17
March 13th, 2008 categories: Market Trends, New Orleans Origionals, Warehouse District
A large number of my clients who are buying New Orleans Condos are single. Many are young professionals or students who want more time to study or work hard, and play hard. A home will come later but for now a condo is the best match for needs and budget.
New Orleans, LA: In the Top 20 Again!
Several of the reasons New Orleans has a higher percentage of young people in 2008 is that many older people moved after getting flooded out in 2005. The older people were in no position to rebuild. The tourist industry is a magnet for younger workers.
New Orleans is home to many colleges, universities and medical schools. You have Tulane University, Tulane Medical School, LSU Medical School, LSU Dental School, Loyola University, UNO, Xavier University, Delgado College, Southern University, Dillard University and Loyola Law School among others. The artistic nature of New Orleans lets young people work out their dreams.
The older people tend to think younger than they are, or maybe they are hoping to be young again. Let me know your ideas.
| Discussion: 1 Comment »
